Indian equity markets are expected to open flat to mildly positive today, with sustained optimism around the India–EU Free Trade Agreement (FTA) likely to support the positive momentum witnessed over the past two trading sessions. With tariffs eliminated on 90–96% of traded goods, the FTA is structurally positive for India’s export-led sectors such as textiles, apparel, leather, gems & jewellery, marine products, tea, coffee, chemicals, and MSMEs, while also aiding technology inflows, services mobility, and long-term competitiveness.That said, near-term market upside may remain capped due to persistent FII outflows, pre-Budget positioning, and mixed global cues including the heightened geo-political tension in the Middle East. 

Attention today is firmly on the Economic Survey 2025–26 at 11:00 AM, which will guide expectations for the Union Budget on February 1, especially around capex (~?12 lakh crore for FY27), fiscal discipline, and policy support for infrastructure, defence, and manufacturing. Cooling India VIX, stable domestic macros, and banking sector strength offer downside support, keeping trade largely range-bound with selective stock-specific action.

Nifty 50 

Nifty has rebounded from recent lows near 24,930 and reclaimed the 200-day EMA (~25,165), providing near-term stability. While momentum has improved, the broader structure remains consolidative after the decline from the early-2026 high near 26,373. Immediate support lies at 25,200–25,150, a critical short-term pivot. On the upside, 25,400–25,500 is the first resistance zone, followed by a stronger supply area at 25,700–26,000. RSI near 40 is recovering from oversold territory, and easing volatility supports orderly moves. As long as Nifty holds above 25,200, the bias remains mildly positive, favouring a buy-on-dips approach toward 25,500.

Bank Nifty 

Bank Nifty continues to outperform, trading above its 20, 50, 100, and 200-day EMAs, reinforcing a strong bullish undertone. The 59,100–59,000 zone remains a key support aligned with the 50-day EMA. On the upside, 59,700–60,000 is a crucial hurdle; a decisive breakout above 60,000 could open the door toward 60,500 and higher. With RSI near 53, the index retains a positive bias as long as it holds above 59,000, maintaining leadership over the broader market.